How Much is Enough Retirement Fund in Thailand?

[I_Love_Thailand]

As Richard said, it all depends on you as to the amount that you spend.

You could live in a nice condo in BKK, go out every night looking at the sights and bright lights, eat only Farang food in nice resturants, maybe own a car, do the regular things tourists do and you could spend 100,000 baht per month.

Or you could live like a Thai,Live in a Thai style house in a village upcountry, eat Thai food, not own a car, Don't go out drinking or even drink at home as drinking is expensive and get along fine for 4000 baht per month.

We live in central Thailand in a village in Phetchabun prov, I have a wife and a 16 year old daughter, each one of us has their own computer with ADSL, UBC and 2 TV sets, 2 aircons, 2 reefers [one for Thai and one for farang] Deep freeze, nice washer, 2 motorcycles and a Honda Civic, imported beef in the freezer along with other imported foods, I eat farang, they do to mostly.
and we can get along on 20,000 a month, but we generally spend more, some months as much as, but rarely over 80,000 baht.

So you see, it is impossible to say what you would spend, you could get along on 4000, but you pobly wouldn't.

That's very information. Thanks.

I heard it's not easy to fix a broadband line at home outside BKK, and that applies to CM too. May I know how much you are paying for yours, and do you live in the CBD of your province where broadband internet is exclusively available? Is it reliable? Do you know how easy it is to fix a line in CM?

[FaranginPhetch]

We live 11 KM north of Phetchabun city and we now have ADSL line installed since they put in a junction box here, Internet is not really dependable in our area, we have a TTT line and only one internet service MAXNET, but would be a lot better if we were on a TOT line where we could have a choice of others, and the price is 845 baht per month, it was fine when we first got it, but like everything else in Thailand, they have oversold the service and you get what you get, and not what you pay for. I know nothing about CM but up there I had CSCOMS dialup and it was better than my now adsl.

The main holdup on getting any internet connection here is first getting a phone line, there are no new lines available, you have to find someone that has a line and buy it from them.

[I_Love_Thailand]

We live 11 KM north of Phetchabun city and we now have ADSL line installed since they put in a junction box here, Internet is not really dependable in our area, we have a TTT line and only one internet service MAXNET, but would be a lot better if we were on a TOT line where we could have a choice of others, and the price is 845 baht per month, it was fine when we first got it, but like everything else in Thailand, they have oversold the service and you get what you get, and not what you pay for. I know nothing about CM but up there I had CSCOMS dialup and it was better than my now adsl.

The main holdup on getting any internet connection here is first getting a phone line, there are no new lines available, you have to find someone that has a line and buy it from them.

I see. There is a limited number of lines for a particular district, and people there are to share them. It's really unheard of here in Singapore where the stage of connectivity is we are talking about making everywhere in the open space connected to the internet via wireless means and at broadband speed.

So getting a phone line and a broadband internet line may well be an important aspect of pre-relocation planning. I shall probably relocate to BKK first, then wait for the opportunity to rent an appropriate CM apartment with both, rent it and sign up for both, then relocate to CM. What I understand is that, in BKK, getting both aren't that difficult.

I simply can't imagine living without internet service.

[FaranginPhetch]

it is quite easy to rent houses and apts. with phone lines, when I was in CM I rented a very nice almost new 2 story, 3 bedroom house with a large yard in a gated community for 6000 a month, with telephone and all furniture.
But if you are mainly interested in highspeed internet then I would not move to Thailand where in the tech fields, close enough is good enough.

[I_Love_Thailand]

it is quite easy to rent houses and apts. with phone lines, when I was in CM I rented a very nice almost new 2 story, 3 bedroom house with a large yard in a gated community for 6000 a month, with telephone and all furniture.
But if you are mainly interested in highspeed internet then I would not move to Thailand where in the tech fields, close enough is good enough.

Actually, in BKK at least, broadband is available. The reason, as I mentioned in another thread, for wanting broadband connection, is I want to have regular video-conferencing with my family on MSN Messenger. I will miss them after relocating.

[FaranginPhetch]

sometimes you will have more power on dialup than BB, I have used vidio on it and it worked as well as on BB most times..They just do not seem to be able to keep BB net connected for over 30 seconds without a break for a second or two.

[Tim]

No seasoned investor would expect to get only 3%

I think you've missed the point.

Yes, most single farang easily live on less than 30k baht per month. Yes, investors usually make more than three percent. On the other hand, personal situations and/or economic circumstances might cause some glitches.

The analysis by paul_au is right on. If you've got substantially less than US$300k toward retirement, then there is increased potential risk.

[I_Love_Thailand]

I think you've missed the point.

Yes, most single farang easily live on less than 30k baht per month. Yes, investors usually make more than three percent. On the other hand, personal situations and/or economic circumstances might cause some glitches.

The analysis by paul_au is right on. If you've got substantially less than US$300k toward retirement, then there is increased potential risk.

I wonder if you understood what a 'bond' (eg treasury bonds or municipal bonds) is?

What I meant when I said that 3% was too low was the risk-free rate is already higher than 3%. In simple terms, if you deposited $100,000 with the US Government or New York Government , you can certainly get much more than 3% every year without fail until the maturity date---unless the government becomes bankrupt.

Do you expect the 'manufacturer' of US$ to go out of stocks of US$ bills?

[FaranginPhetch]

I---unless the government becomes bankrupt.

Do you expect the 'manufacturer' of US$ to goes out of stocks of US$ bills?

No they will never run out of US$ bills.
Thats why the US 1960 dollar is now worth only about 15 cents,,If you are running low, just issue some more with no backing..555

[paul_au]

I am sorry, but you seem to know little about investment? No seasoned investor would expect to get only 3% when even the risk-free rate offered by the government of USA (treasury bonds) is offering a much better guaranteed, default-free rate.

I never said this is a risk free investment, but I just gave an example of a conservative investment, for some one who worries about the stock market fluctuations, to diversify some of there money into the bond market. This 3% is after tax, and may be considered approximately 4% before tax and is only how much I recommend you give your self out of an investment, not how much the investment earns.
I'm also recommend you reinvest any proportion of your returns over this amount, so as to allow your investment to grow, to counteract the affects of inflation, as you may be retired for 50 years. It is better to be conservative, in your investment income, if you want it to last for many years, of course if you are only planning to live 10 years, you may want to spend 15% of your investment every year.
P.S. If I know nothing, I would never have become a self funded retiree.